Penguin Solutions (PENG) PT Raised to $75 at Stifel

Stifel analyst Brian Chin raised the price target on Penguin Solutions (NASDAQ: PENG) to $75.00 (from $66.00) while maintaining a Buy rating.

The analyst comments "F3Q results meaningfully exceeded ours/cons. estimates, largely on strength in memory (+60% QQ, vrs our +46% QQ). This underpins Penguin’s improved revenue outlook for FY26 (+20-24% YY) and F4Q (implied mid-single digits+ QQ), which though impressive, is not wholly surprising given +QTD memory ASP trends. More unexpectedly, Penguin gave a preliminary FY27 outlook with both revenue and non-GAAP EPS expected to grow +30% YY (compared to our prior +25% and +37% forecasts, albeit off a lower FY26 base). Per management, this implies mid-teens growth in Advanced Computing – somewhat underwhelming, yet likely conservative in our view considering the stronger tone around current backlog/pipeline and product momentum. Overall, we expect memory to remain a driving force into FY27 and are optimistic that Penguin’s AI factory platform strategy can lead to improved growth synergies between memory and compute. We raise our FY26/FY27 estimates and price target to $75 (22x our FY27 EPS)."

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